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7:471

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

awarded on the non-set-aside portion, but cannot be accepted (4.8., because of "all-or-none" or other quantity limitations, or because the offeror is nonresponsible), and (Il) at the time of negotiation for the set-aside portion, the offer could be accepted (e.8., because the set-aside quantity is large enough that the quantity limitations could be complied with, or because the offeror has now become responsible), then the following procedures shall be

followed: Step One. Eligible concerns (in the order of priority in (2) above) will be requested to offer at the adjusted unit price of the unaccepted offer, a quantity of the set-aside portion equal to the quantity of the unaccepted offer.

Step Two. If no eligible concern is willing to take the entire quantity of the unaccepted offer, then all eligible concerns (in the order of priority in (2) above) shall be requested to make offers on any lesser portion at the same price, until either the entire quantity is awarded or all eligible concerns refuse any further portions of such quantity. Step Three.

Case 1. If the unaccepted offer was submitted by a concern not eligible to participate in the set-aside, and if any of the quantity under Step Two is not awarded, then it and all other remaining quantities of the set-aside portion must be withdrawn and resolicited. If the entire quantity under Step Two is awarded among eligible concerns, Steps Four, Five and Six are applicable to the remaining set-aside portion.

Case 2. If the unaccepted offer was submitted by a concern eligible to participate in the setaside, Steps Four, Five and Six are applicable to the remaining set-aside portion regardless of whether any quantity under Step Two is not awarded after all eligible concerns have been afforded an opportunity to offer on the unaccepted quantity. However, the concern which submitted the unaccepted offer shall be eliminated from consideration under Step Four and Step Five, for award at higher prices, unless that concern first accepts a quantity of the set-aside portion equal to the entire quantity of its unaccepted offer, at the adjusted price of its offer.

Step Four. In case there is more than one unaccepted offer which meets the conditions of (1) and (II) above, Steps One, Two and Three above shall be applied with respect to the quantities of each such offer, in turn, from lowest to highest.

Step Five. Eligible concerns in the order of priority in (2) above will be requested to offer at the highest unit price awarded on the non-set-aside portion of any quantity of the set-aside portion remaining after Steps One, Two, Three and Four have been completed.

Step Six. If the entire set-aside portion is not taken by eligible small business concerns pursuant to Steps One through Five above, the partial set-aside is automatically dissolved as to the unawarded portion and such unawarded portion may be procured by advertising or negotiation as appropriate, in accordance with existing regulations. (c) Definitions.

(1) A "small business concern" is a concern, including its affiliates, which is indepen

dently owned and operated, is not dominant in the field of operation in which it is making an offer on Government contracts, and can further qualify under the criteria set forth in the regulations of the Small Business Administration (CFR Title 13, Section 121.3–8). In addition to meeting these criteria, a manufacturer or a regular dealer submitting offers in his own name must agree to furish in the performance of the contract, end items manufactured or produced by small business concems; provided, that this additional requirement does not apply in connection with construction or service contracts.

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a

cause

(2) 'Labor Surplus Area. The term "labor

surplus area" means a geographic area
which at the time of award is classified
as such by the Secretary of Labor in
the Department of Labor "Listing of
Eligible Labor Surplus Areas Under
Defense Manpower Policy 4A and

Executive Order 10582".
(3) Labor Surplus Area Concerns. The term

"labor surplus area concern" means
concern that agrees to perform or
to be performed a substantial proportion
of a contract in labor surplus areas.
A concern shall be deemed to perform a
substantial proportion of a contract in
labor surplus areas if the aggregate
costs that will be incurred by the
concern or its first tier subcontractors
on account of manufacturing or produc-
tion performed in labor surplus areas
amount to more than 50% of the contract

price. (d) Agreement. The offeror agrees that if awarded a contract as small business LSA concern under the set-aside portion of this procurement, he will perform or cause to be performed a substantial proportion of the contract in areas classified at the time of award or at the time of performance of the contract as LSA.

a

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(e) Identification of Areas of Performance. Each offeror desiring to be considered for award as a LSA concern on the set-aside portion of this procurement shall identify in Section B of his offer the geographical areas in which he proposes to perform, or cause to be performed, a sub stantial proportion of the contract. If the Department of Labor classification of any such area changes after the offeror has submitted his offer, the offeror may change the areas in which he proposes to perform, provided that he so notifies the Contracting Officer before award of the LSA set-aside portion.

Such ofterors are instructed to insert in the clause entitled “Eligibility for Preference as a Labor Surplus Area Concem" in Section B of the solicitation, the address(es) where costs incurred on account of manufacturing or production (by offeror or first tier subcontractor) will amount to more than fifty percent (50%) of the contract price.

CAUTION: Failure to list the location of manufacture or production and the percentage of cost to be incurred at each location in the space provided in the clause entitled "Eligibility for Preference as a Labor Surplus Area Concer" set forth in Section B of the solicitation will preclude consideration of the offeror as

a LSA concern. (f) Requirements Contract. Only one award will be made for each item or sub-item of the nonset-aside portion and only one award will be made for each item or sub-item of the set-aside portion. For the purpose of equitably distributing orders in accordance with this “Notice of Partial Small Business Set-Aside," the Government will apportion the quantities to be ordered as equally as possible between the non-set-aside Contractor and the set-aside Contractor to whom the awards are made.

(End of clause)

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NOTICE OF PARTIAL SMALL BUSINESS SET-ASIDE - ALTERNATE (1978 JUN)

(a) General. Part of this procurement identified in the Schedule as the “set-aside portion," has been set aside for award only to all business concerns. Award of the set-aside portion will be made after awards have been made on the non-set-aside portion. (b) Procedures.

(1) Determining Eligibility.
(A) To be eligible to participate in the set-aside portion of this procurement, a

small business concern must submit a responsive offer on the non-set-aside

portion. (B) The Government reserves the right not to award to any concern submitting

a token offer on the non-set-aside portion or attempting by any other device

to secure an unfair advantage over the other offerors.
(2) Determining Priority for Award. Small business concerns eligible under (1)

above will participate in the set-aside in the following order of priority:
Group I. Small business concerns which are also

LSA. A concern in this group
which has received an award on the
non-set-aside portion of an item
shall first be requested to offer
the same percentage of the set-aside
portion. If a percentage of the set-
aside portion of the item remains to
be awarded, a drawing by lot shall
determine the order of priority
within this group for negotiations

for the balance of the item.
Group 2. Small business concerns which are not LSA concerns. If a quantity of

the item remains unawarded after negotiations with concerns in Group

1, the same procedure shall be followed for Group 2.
(3) Determining the Set-Aside Award Price.
(A) General Rule.

Subject to the exceptions listed in (B) and (C) below, awards under the set-
aside shall be made at the highest unit price for each item awarded on the
non-set-aside, adjusted to reflect transportation, rent free use of Gover-
ment property and other cost factors considered in evaluating offers on the
non- set-aside portion. When any one of separate quantities offered on an
item cannot be accepted without awarding other quantities of that item at
higher prices, the weighted average price shall be used to determine the
highest unit price for award if the highest award of the non-set-aside portion
of an item was made on such a conditioned offer. When offers on the non-
set-aside portion tie-in two or more items so that an award cannot be made
for a quantity on one item without a concurrent award of a quantity on
another item, such tie-in conditions will be disregarded and the price of
fered for each quantity under each item shall be considered separately. The
set-aside award price shall be subject to the same discount terms used in the

evaluation of the highest non-set-aside award price.
(B) Award Price Involving Foreign End Products (See ASPR Section VI).

(i) When the highest award price on the non-set-aside is established

by an award for a foreign end product, the award price for the setaside portion shall be the award price on the non-set-aside as adjusted in evaluating the offer submitting the foreign end product for award under applicable Buy American procedures, except for awards on the set-aside to concerns submitting foreign end products in which case the general rule applies.

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(ii) Award under the set-aside to a concern offering a foreign end

product, when the highest award price on the non-set-aside portion
is established by a domestic source end product, shall be at a price
which, after application of the evaluation factors used under Buy
American procedures for determining eligibility of a foreign end
product for award, is equal to the highest award price on the no
set-aside portion, adjusted to reflect transportation and other fac-

tors considered in evaluating the offers.
(C) Obtaining Offers and Processing Set-Aside Awards.

(i) When an unaccepted low offer is not involved; if there is no unac

cepted low offer meeting the criteria in (ii) below, eligible concers in the order of priority in (2) above will be requested to offer on the set-aside quantity at the highest unit price awarded on the non- set-aside portion. Concerns may offer less than the total setaside portion. If any part of the set-aside portion is not taken by eligible small business concerns, the partial set-aside is automatically dissolved as to the unawarded portion. Such unawarded portion may be procured by advertising or negotiation, as appropriate,

in accordance with existing regulations. (ii) When an unaccepted low offer is involved; if (I) a responsive offer

is submitted on the non-set-aside portion at a unit price which, when adjusted, is lower than the adjusted highest unit price awarded on the non-set-aside portion, but cannot be accepted (e.g., because of “all-or-none" or other quantity limitations, or because the offeror is nonresponsible), and (II) at the time of negotiation for the set-aside portion, the offer could be accepted (1.8., because the set-aside quantity is large enough that the quantity limitations could be complied with, or because the offeror has now become responsible), then the following procedures shall be

followed: Step One. Eligible concerns (in the order of priority in (2) above) will be requested to offer at the adjusted unit price of the unaccepted offer, a quantity of the set-aside portion equal to the quantity of the unaccepted offer.

Step Two. If no eligible concern is willing to take the entire quantity of the unaccepted offer, then all eligible concerns (in the order of priority in (2) above) shall be requested to make offers on any lesser portion at the same price, until either the entire quantity is awarded or all eligible concerns refuse any further portions of such quantity. Step Three.

Case 1. If the unaccepted offer was submitted by a concern not eligible to participate in the set-aside, and if any of the quantity under Step Two is not awarded, then it and all other remaining quantities of the set-aside portion must be withdrawn and resolicited. If the entire quantity under Step Two is awarded among eligible concerns, Steps Four, Five and Six are applicable to the remaining set-aside portion.

Case 2. If the unaccepted offer was submitted by a concem eligible to participate in the setaside, Steps Four, Five and Six are applicable to the remaining set-aside portion regardless of whether any quantity under Step Two is not awarded after all eligible concerns have been afforded an opportunity to offer on the unaccepted quantity. However, the concem which submitted the unaccepted offer shall be eliminated from consideration under Step Four and Step Five, for award at higher prices, unless that concern first accepts a quantity of the set-aside portion equal to the entire quantity of its unaccepted offer, at the adjusted price of its offer.

Step Four. In case there is more than one unaccepted offer which meets the conditions of (1) and (II) above, Steps One, Two and Three above shall be applied with respect to the quantities of each such offer, in turn, from lowest to highest.

Step Five. Eligible concerns in the order of priority in (2) above will be requested to offer at the highest unit price awarded on the non-set-aside portion of any quantity of the set-aside portion remaining after Steps One, Two, Three and Four have been completed.

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